After the sharp drop in Bitcoin, a V-shaped rebound occurred, and the popularity of Biden and Trump-themed meme coins topped the charts

Author: Mary Liu, BitpushNews

Driven by optimism over the Federal Reserve's interest rate cuts this year, the cryptocurrency market saw a slight increase on Wednesday.

Federal Reserve Chairman Jerome Powell stated that the Fed is expected to lower interest rates in 2024, provided that Fed officials "have greater confidence in inflation moving toward a sustainable 2% target."

The cryptocurrency market rebounded on Wednesday, recovering most of the losses from the previous day's sell-off. According to Bitpush terminal data, as of the time of writing, Bitcoin rose 3.9% to $66,219, while Ethereum climbed over 8% to $3,829.55.

Other altcoins also rebounded alongside Bitcoin and Ethereum. BNB surged 8%, and Solana increased by 6%.

Cryptocurrency-related stocks also regained momentum. Coinbase and Microstrategy rose 10% and 18%, respectively. Cipher Mining soared 27%, while Iris Energy and CleanSpark increased by 6% and 8%, respectively. Among crypto mining companies, Marathon Digital edged up 1.6%, while Riot Platforms dipped slightly by 1%.

Surge in Popularity of Biden and Trump Themed Meme Coins

The meme coin sector frequently switches popularity, and after Joe Biden and Donald Trump were both nominated as presidential candidates in the "Super Tuesday" elections, meme coins based on the Solana blockchain led the charge.

According to CoinMarketCap data, the meme coin inspired by Biden's name, jeo boden (BODEN), surged over 4,700%, trading at $0.058 at the time of writing, with a 24-hour increase of more than 17 times and a trading volume exceeding $40 million.

The Trump-related MAGA (TRUMP) token rose nearly 8 times; this token was created in the summer of 2023 and had modest trading volumes in its initial months. However, as Trump repeatedly made headlines in election-related news, the token skyrocketed.

It is worth noting that newly issued meme coins carry high risks, and investors should DYOR to avoid becoming victims of rug pulls and exit scams.

The emerging meme coin Dogwifhat on the Solana chain outperformed established players DOGE and BONK, rising by 48%.

Rich Rosenblum, co-founder and president of digital asset trading firm GSR, stated that despite the recent rise in meme coins, retail participation in the cryptocurrency market remains far below the levels seen during Bitcoin's last all-time high in 2021.

Rosenblum noted that as Bitcoin reaches new highs, some investors may sell portions of their Bitcoin holdings to realize profits and invest in other areas of the cryptocurrency market, such as meme coins and NFT tokens, but trading in meme coins is highly speculative.

"V-Shaped" Recovery Paves the Way for New Highs

On Tuesday, Bitcoin set a new intraday record of $69,210, the first time since November 2021, before sharply declining. According to a chart shared by Swissblock, Bitcoin quickly rebounded above $62,000, marking the beginning of a new upward trend, with a target price level of $76,000. Swissblock stated in a Telegram update on Wednesday: "V-shaped recovery, continuing toward new all-time highs."

David Wells, CEO of Enclave Markets, remarked: "To me, yesterday seemed like a significant bullish adjustment, which is quite typical when reaching multi-year highs. There may be a second test of the highs, and if we break through that, considering the large options positions, things could get interesting."

David Duong, head of institutional research at Coinbase, commented: "Initially, it seemed primarily driven by spot profit-taking, as the open interest in perpetual futures did not decline, nor did the corresponding funding rates. However, subsequently, the price action caught up with some significant long liquidations and reset the market. I believe we won't see such a significant drop again in the short term unless there is a major external shock."